Blog

May 31, 2016

Using a collection agency to recover unpaid debts can be a highly-effective and cost-efficient way to manage your company’s finances and avoid serious financial losses. Knowing when to use a collection agency can aid the recovery effort and greatly improve the chances of successfully collecting unpaid or delinquent debts owed to your company.

If a debt is allowed to go unpaid and uncollected for 90 days or longer, the chance of being able to successfully recover the money owed can be greatly diminished, as the longer a debtor goes without any pressure to pay, the more they will start to feel as though they have gotten away with not paying for the product or service you provided.

April 29, 2016

A commercial collection agency has only one core business: to recover your money as efficiently and as quickly as possible. As a business owner, you specialize in your core business, so why would you want to waste your time and your staff’s time and energy trying to accomplish a task that you do not specialize in? A commercial collection agency has the experience to understand how to handle all of the complex issues that arise when pursuing debts and the expertise to know how to use every available tool and technique to pursue and recover your debt.

March 31, 2016

If you are an agency or related business, you will note that tax time presents unique opportunities to improve debt collection efforts as well as opportunities to grow your client base.

Tax season is not only a time to remind your existing clients of the importance of debt recovery efforts…it is also a time to inform your clients and your prospective clients that this is a time when debt recovery can be particularly advantageous.

Apart from the benefit of new business, diligent agencies can yield great results during tax season, particularly on accounts that have had minimal prior response to recovery efforts.

February 29, 2016

Commercial collectors’ tips for your business can help you recover the most bad debt possible, while avoiding any potential pitfalls, by showing you what needs to be done each and every step of the way, from before your customer even receives their invoice until they finally pay the total amount they owe to your company.

The number one tip for improving commercial collection effectiveness is persistence. Most companies are not able to dedicate the immense time and resources needed to stay on top of their debtors letting them know the matter is not going to go away or be pushed back any further. If you are unable to commit the appropriate resources necessary to remain persistent, an experienced commercial collector can help take this burden off of your back, so you can focus on your core business.

January 29, 2016

Knowing how to utilize a commercial collector can help business owners avoid costly missteps that can lead to enormous financial losses, IRS complications, and legal liability.

The fact is, no matter what you do, many debtors will avoid paying your company what they owe. All business owners are faced with this dilemma.

The debtor’s issue, whether it was caused by personal financial problems, family hardships, unemployment, injury, lack of motivation to pay, no intention or desire to be fiscally responsible, the idea of getting something without paying for it, or whatever the cause of non-payment happens to be, is now your company’s problem and you will suffer the financial consequences for it, unless each unpaid account is addressed with vigor, determination and persistence.

December 29, 2015

Money that you are owed should not be allowed to slip away quietly and your company should not have to suffer losses because of irresponsible debtors refusing to pay for goods or services your company provided in good faith.

If appropriate steps are not taken and unpaid accounts are not dealt with in the right manner, it can be very easy for debtors to avoid paying what they owe a company. In order to stand any chance of getting paid by an unmotivated debtor, you must pursue them with vigor and persistence; however, that having been said, pursuing debtors without any experience or knowledge of the dos and don’ts of debt collecting is not as simple as it may seem.

Commercial debt collectors understand how to pursue debtors and recover the most possible outstanding debt.

November 30, 2015

If you are like many business owners, your company is struggling with the ongoing problem of recovering debt from customers who have not yet paid or refuse to pay your company what they owe. After your company has worked hard to earn their business and provide a high-quality product or service, it can be particularly frustrating to learn that the customer is unable or unwilling to pay for what they received.

When in-house efforts fail or fall short of expectations, business owners often turn to experienced debt collectors to assist them in this complex and constantly evolving process, for a variety of reasons…the most important of which is that often experienced debt collectors recover more debt than those without the same experience and resources.

October 30, 2015

Statistics show that after 90 days, the effect of in-house collection efforts wears off by as much as 80%. Delinquent accounts within the 60-90 day past due time-frame are more likely to yield positive results from in-house debt collection efforts. By this point, you have likely requested payment at least four to six times in the form of phone calls, letters and statements. After systematically pursuing your debt collection accounts for 60 to 90 days from the initial due date, with no recovery, you’re being delivered a message by your debtor. After this point, it becomes increasingly more difficult to convince a debtor to pay you.

Referral to a third-party debt collector, who can motivate debtors to pay you the amount owed without delay, may succeed in collecting accounts, where in-house efforts were insufficient.

September 30, 2015

Collection agency services are a powerful debt collection tool for business owners whose primary concern is their company’s financial well-being.

As a business owner who is owed a debt for a service or product provided by their company to a customer in good-faith, there is a great temptation to personally pursue the debtor to recover the money that was earned. Often this leads to continued and open-ended spending to try to recover debt and wasted employee time.

August 31, 2015

Accounts receivable management is an essential aspect of running a successful business. Unfortunately, for many companies, handling accounts receivable management internally can prove to be burdensome, as it is extremely draining on your company’s resources to dedicate the necessary time and energy to this complex and demanding task.

Utilizing an outside company to handle your accounts receivable management is a cost effective and efficient alternative. Outsourcing your receivables allows you to minimize staff and expenses in that area and re-allocate them for obtaining new and profitable customers.

Smart business owners know you should “never throw good money after bad,” meaning that if you spend good money on the chance of recovering bad debt, you may end up losing both. Most commercial collectors that handle accounts receivable management for companies only take a fee on any collection of a receivable. Therefore, you are not paying anything up front. You only pay when you get results. So, when you outsource to an agency, you will never have to worry that you will lose money in the process of pursuing the debts owed to your company.

July 31, 2015

One of the biggest concerns many business owners face when attempting in-house debt collection is the risk of failure. If you are putting out your own money, time and your company’s valued resources in an effort to collect debt and you don’t succeed then you will have put yourself further in the hole by spending good money to chase after bad debt.

You can shift the risk and avoid the constant worrying and anxiety of the “success or failure” of internal debt collection efforts and the possibility of causing further financial damage to your company that was already injured by bad debtors failing to pay what they owe you. Why risk pouring salt on the wound and making it worse?

Turning over your bad debt to an experienced debt collection agency allows you to shift all of the risk from your company to a third-party. Since most debt collectors work on a contingency-basis, you will owe nothing if they don’t collect…so you have nothing to lose and all the risk is shifted to the debt collection agency. If they don’t collect, it is their time, money and resources that are spent on this roll of the dice, not yours.

June 29, 2015

For business owners, there are many benefits of using a third-party debt collection company, which can far exceed the benefits of establishing and maintaining an internal debt collection department. Understanding the benefits of using a third-party to collect debt gives business owners valuable insight that can help them to improve their company’s bottom line and streamline processes to achieve maximum results.

May 30, 2015

Commercial collectors build their reputation by helping companies recover bad debt from past due or otherwise unpaid accounts. Essentially, commercial collectors exist because they specialize in the area of commercial debt collection, an expertise that makes their services extremely valuable to business owners.

Many business owners have attempted to collect their own unpaid debts either by themselves or with help from their own employees or partners. There are several problems with this strategy.

To begin with, if the debtor owes you money, they were likely a customer of yours, which means you have more than likely developed a cordial relationship with this person at some stage. Debtors are notorious for exploiting this relationship and turning it against the creditor by threatening to “never pay a dime” or worse yet, sabotage your relationship or your reputation with other clients. A third-party commercial collector has no such relationship with the debtor, so there is never an issue of a relationship being used as a tool to avoid payment.

April 29, 2015

Debt collection, for the savvy business owner, begins before the debt is delinquent and in many cases before there is even a debt to collect.

When it comes to debt collection, there are several important steps you can take in advance to not only help you to avoid bad debt, but also to ensure that if an account becomes delinquent it is easier to collect on and recover your assets.

March 11, 2015

Commercial debt recovery is a necessity for your business. Ensure that your company is not losing money that can easily be recovered by employing an experienced commercial debt recovery agency. Take action and avoid having to write-off as a loss, money that you earned for products or services you provided to a customer in good faith.

Commercial debt recovery can be very time-consuming and expensive for businesses to try on their own, whereas placing your bad debts with an experienced commercial debt recovery agency takes the burden off of your hands; and, with most commercial debt recovery agencies, you only pay when they successfully recover debts on your behalf.

February 12, 2015

Whether it is a consumer or commercial debt, it is helpful to have a clear understanding about debt collection. There are a number of debt collection myths that both individuals and companies subscribe to that are simply not true. Knowing the difference between the myths and the facts is the key to knowing how to handle debt collection.

January 12, 2015

A collection agency for your company is not just a necessary evil, it is a safety net, an insurance policy, a staunch ally, a life-raft and the best business partner your company can have.

Allowing debtors to get away with not paying the money owed to your company for providing goods or services in good faith is like having a hole in your pocket that keeps getting bigger and bigger until there is more money falling out of your pockets than going in. If financial losses are unchecked, the cumulative effect of late payments or unpaid accounts can be devastating to your company. Fostering a long-term relationship with an experienced collection agency is not only the first step to taking control of your company’s financial future, it is a lasting committed and mutually beneficial partnership that can mean the difference between failure and success.

December 9, 2014

Commercial collection agencies can help empower your company, enabling you to focus on your core business, while bad debts are recovered on your behalf.

Additionally, a commercial collection agency helps you to avoid unpleasant and costly confrontations with your customers and maintain your valuable image as your customer’s friend and advocate. In short, a commercial collection agency takes the personal factor out of the equation with you and your debtor.

Taking on the role of a stern and persistent mediator, a commercial collection agency’s debt collectors are able to appear objective to the customer. Being objective prevents the debtor from using the personal relationship to pull emotional strings that a creditor rightfully has with its business, threaten the creditor with loss of business or other typical tactics a debtor may use to avoid or delay payment.

A commercial debt collection agency specializes in recovering delinquent and unpaid debts. Just as you have become a leader in your industry through education and experience; a commercial collection agency has learned how to deal with business debtors to most efficiently motivate payment and recover the maximum amount of money on your behalf.

When you place your debt collection needs with an experienced commercial collection agency you can stop spending all of your time trying to collect money you have already earned and place your focus where it should be, on growing your business and securing new customers.

To summarize, commercial collection agencies are an essential tool for business owners and can help your business collect the maximum amount of money owed without damaging your company’s image or relationships with your customers, so you can focus on your business.

November 10, 2014

Many business owners have great difficulty when it comes to commercial debt collection.

Debtors can avoid paying easily; and, without a clear strategy in place for collecting payment from debtors, they may not have sufficient reason or motivation to feel that paying their debt is the best option.

With an effective strategy for approaching your debtors in place, you can greatly impact a debtor’s decision to pay.

Unfortunately, a major hurdle that many businesses struggle to overcome is the lack of a comprehensive, yet streamlined approach that yields a high rate of debt recovery.

October 9, 2014

One debt collection mistake you want to avoid at all costs is failure to remain compliant when pursuing a debtor or attempting to collect a debt. Compliance related issues can be very costly and can expose your company to lawsuits and even criminal charges that can damage your wallet and your company’s reputation.

Unfortunately, those companies that have made it common practice to not pay their creditors have learned how to utilize debt collection laws against their creditors to avoid paying the bill. In some instances they can even back you into a corner causing you to have to pay them for debt collection mistakes.

September 9, 2014

Commercial debt recovery is an absolute necessity in order to maintain control of your company’s financial wellbeing and stop bad debt and insufficient debt recovery from destroying the company you have worked so hard to build.

Commercial Debt Recovery – In-House

Commercial debt recovery can be very costly and inefficient if incorrectly managed. Experience is the key to successful debt recovery. There are vast and constantly evolving laws that govern commercial debt recovery and failure to understand and adhere to these laws can lead to trouble.

Attempting to recover debt without the aid of an experienced commercial debt recovery team can have serious consequences for your business including legal liability, loss of business, damaged company reputation, depleted resources, wasted time and, ultimately, costly and ineffective debt recovery for your business.

Commercial Debt Recovery vs. Consumer Debt Recovery

Commercial debt recovery agencies specialize in collecting debt for business owners from other business owners and professionals. A consumer debt recovery agency typically consists of customer service representatives with bad attitudes and aggressive tactics. Whereas this may cause some to shake in their boots and give up their wallets, the savvy business owner or professional that owes you money will likely not be coercible with such tactics and may be less than amused. A commercial debt recovery specialist, on the other hand, is specifically trained in the business environment to understand its processes, language and etiquette, making commercial debt recovery agencies much more effective when dealing with business owners or professionals who have, for whatever reason, avoided paying their debt.

Commercial Debt Recovery – Choosing an Agency

For commercial debt recovery, savvy business owners understand that hiring a commercial debt recovery agency is the clear choice.

When it comes to commercial debt recovery for your business, an experienced commercial debt recovery agency can be your most effective debt recovery tool, helping you turn more bad debts into paid accounts and helping you to limit your personal liability and protect your company’s reputation.

September 27, 2013

Learning a few of the keys to successful debt collection can have an enormous impact on your company’s ability to get paid on past due or unpaid accounts.

Keys to Successful Debt Collection: Timing

Timing is an important factor in debt collection, as once a debtor has allowed a bill to go unpaid, after 30, 60 and 90 days, the debtor becomes less likely to ever pay the debt, since they move on to other pursuits and any relationship you or your company may have had with the debtor when the product or service was provided has long since faded.

Swift action and consistent communication will show the debtor that they are not going to get away with not paying the money owed to you. The psychological effect on a debtor of inaction by the creditor can seriously damage your ability to recover payment and, over time, the chances dwindle even more. The key to successful debt collection, strike while the iron is hot and contact your debtor immediately upon non-payment.

If a debtor refuses to pay, makes excuses or ignores numerous requests for payment, you might consider turning over their account to an experienced debt collection company to send a powerful signal to the debtor that the payment they owe will be pursued vigorously.

October 23, 2012

Is your company having a difficult time with commercial debt collection? Commercial collection agency tips and techniques will assist your company’s debt collection efforts and help improve your speed of recovery.

One of the most important commercial collection agency tips is to make sure you use proper and sufficient documentation, such as service contracts, purchase agreements, invoices, signed guarantees, et cetera. Many debtors will attempt to avoid paying the debt they owe your company simply because, when push comes to shove, the debtor is not able to “prove” the liability of the debtor, or that the amount owed is accurate or valid.

October 23, 2012

Debt recovery services are essential for all diligent business owners who are concerned with their company bottom line.

As a business owner, you have spent time and money to obtain each customer and you have spent more time and money providing a service or product. It is not cost effective to spend more of your company time and money attempting to collect money already earned. Debt recovery services offered by the majority of commercial collection agencies handle all accounts/claims on a contingency basis.

By hiring a collection agency to handle your debt recovery, you will not have to spend time recovering bad debts and you do not pay any money unless you recover money. Debt recovery services offered by an experienced debt collector are much more effective than trying to collect debts in-house. Debt recovery services are complex and the laws that govern debt collection practices are constantly changing and understanding these laws and making sure you are always in compliance can be very challenging. Taking on your own debt recovery can be difficult, unproductive and exposes your company to a great deal of personal risk.

In addition, debt recovery services can help your company avoid tax complications. The Internal Revenue Service is now requiring more from business owners in order to claim a bad debt as a write-off. Placing your debt recovery with an experienced commercial debt collector is a way to meet those requirements prior to a write-off. Therefore, debt recovery services can help your company recover your debts more efficiently, save you time and money, while avoiding additional risk or tax complications and give you the opportunity to focus on your core business by allowing an experienced debt collector to recover unpaid debts for your company.